Prudential 2002 Annual Report Download - page 136
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Notes to Consolidated Financial Statements
18. INCOME TAXES
The components of income tax expense (benefit) for the years ended December 31, were as follows:
2002 2001 2000
(in millions)
Current tax expense (benefit)
U.S. ..................................................................... $(116) $(1,023) $364
State and local ............................................................. 2 60 31
Foreign ................................................................... 30 59 31
Total..................................................................... (84) (904) 426
Deferred tax expense (benefit)
U.S. ..................................................................... (248) 773 (86)
State and local ............................................................. (61) (74) (37)
Foreign ................................................................... 201 171 95
Total..................................................................... (108) 870 (28)
Total income tax expense (benefit) ................................................. $(192) $ (34) $398
The Company’s actual income tax expense (benefit) for the years ended December 31, differs from the
expected amount computed by applying the statutory federal income tax rate of 35% to income from continuing
operations before income taxes for the following reasons:
2002 2001 2000
(in millions)
Expected federal income tax expense (benefit) ......................................... $ 23 $ (49) $253
Favorable tax resolution pertaining to 1995 disposition ................................... (183) — —
Equitytax ...................................................................... — (200) 100
Non-taxable investment income ..................................................... (64) (63) (5)
State and local income taxes ........................................................ (41) (9) (4)
Change in valuation allowance ...................................................... 37 17 14
Non-deductible expenses .......................................................... 16 241 31
Other .......................................................................... 20 29 9
Total income tax expense (benefit) ............................................... $(192) $ (34) $398
Prudential Financial 2002 Annual Report 135